Recently, Global Bitcoin ATM installation hit 10,000. This is after the first machine debuted seven years prior. According to data from the Norwegian Financial services company named AksjeBloggen, the numbers have risen to an average of 167%, year-on-year.
Truthfully, 2020 has surpassed the past years, in the principal nine months, the number of ATMs rose by 3,885 – a 67% upsurge in 2019.
These numbers indicate COVID-19’s effect on the industry – it steered a broader trend towards the use of more groundbreaking forms of financial interaction – and the offensive health of the cryptocurrency sector.
ATMs prove to be one of the most convenient and fastest ways to transfer physical cash to Bitcoin or other cryptocurrencies, the CEO and co-founder of CoinFlip, a leading US Bitcoin ATM operator, Daniel Polotsky.
“Bitcoin is a very complicated concept and we’ve packaged it up, and made it easy for you to go to the ATM, use cash and you get Bitcoin right away—before you even get back to your car,” he said.
In a network of over 900 ATMs in 45 states, CoinFlip has been rapidly growing. They’re installing 30 to 50 new ATM’s a day, and it is in the process of increasing to Canada, according to Polotsky.
Though using a cryptocurrency exchange requires a bank account, only a mobile phone is essential to transfer or change small sums (under $900) thru an ATM, he added. The process will take a little as five minutes. (Rules may vary depending on the operator and country.)
ATM regulation evolves fast
In 2013, the world’s first Bitcoin ATM opened, in Vancouver. But the US has been the undisputed leader when it comes to installations. In September, US Bitcoin ATMs have hit 7,567 this is a 127% jump in a year.
Now categorized as the second-largest market globally, Canada has 869 Bitcoin ATMs as of September.
But in nations with volatile financial markets, the ATMs are now getting popular and are now present in more than 70 countries.
Leading Bitcoin ATM manufacturer globally, Genesis Coin has a market share of 35%, and 3,406 ATMs are operating worldwide as of September.
CoinFlip’s machines comply with regulations that were introduced in 2013, Polotsky said, “We do comply with all the same standards that a bank does, at least in the United States. Over here, it is a very regulated industry,” he said.
However, the countries aren’t able to keep up. The authorities are worried that Bitcoin ATMs present a humble way of currency conversion for money laundering and tax evasion, and others have introduced new legislation that makes unlicensed machines illegal.
A Polish firm in Germany, named KKT UG, has seen its 17 unlicensed ATMs caught by the authorities last month. The machines were in breach of German regulations has passed at the end of 2019.
However, the sector’s growth showed no sign of slowing down.
“In general, this is a very young industry and there’s plenty of growth opportunities,” said Polotsky. “As Bitcoin becomes more popular, and more people want to purchase it, I definitely think there’s room for more [ATMs] both in the US and beyond,” he said. “I don’t see why we can’t get to 100,000.”
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